Press Release

Qualified Borrowers Who Lost Homes to Foreclosure to Receive Mailing, May Be Eligible for Payment

National foreclosure settlement includes approximately $1.5 billion for payments

September 24, 2012

(Anchorage, Alaska) The Consumer Protection Unit of the Alaska Attorney General’s Office advises that claim forms will be going out starting today to approximately 2600 Alaskans who lost their homes to foreclosure between January 1, 2008 and December 31, 2011 and who may be eligible for payment under the national mortgage foreclosure settlement. The mailings will be from the Settlement Administrator, Rust Consulting.

This settlement, which took effect last April, involved the nation’s five largest mortgage servicers: Ally/GMAC, Bank of America, Citi, JPMorgan Chase and Wells Fargo. As part of the settlement, 2 million borrowers nationwide whose loans were serviced by these banks, and who lost their home to foreclosure during the qualifying time period, are eligible for cash payments from a fund of $1.5 billion.

The exact payment will depend upon the total number of borrowers who submit claims. The payment is intended as partial compensation for the mortgage servicers’ illegal conduct. By participating, borrowers do not give up any legal rights and they can pursue other legal remedies such as filing a lawsuit or joining a class action.

The Consumer Protection Unit warns homeowners to be aware of settlement-related scams. Borrowers do not need to pay anyone to file a claim or seek other settlement-related assistance.

For more information about eligibility and filing a claim, borrowers should contact the Settlement Administrator:

Borrowers who believe they may qualify for a payment, but did not receive a notice because they have moved, should contact the settlement administrator directly to provide their contact information.

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The Attorney General and Department of Law staff may not provide legal advice to private citizens or organizations. Please contact an attorney if you need legal advice. The Alaska Lawyer Referral Service or your local bar association may be able to assist you in locating a lawyer.